Getting a MSCRMTracing error in your Event Log? Probably you have read the next entries. Once you understand them, apply the PowerShell script showed below.
http://support.microsoft.com/kb/907490
http://social.microsoft.com/Forums/el-GR/crmdeployment/thread/1f8ac761-196c-4814-9d82-d48d297a9648
PowerShell Script:
Add-PSSnapin Microsoft.Crm.PowerShell
$setting = Get-CrmSetting TraceSettings
$setting.Directory = ‘Drive:\Program Files\Microsoft Dynamics CRM\Trace’
Set-CrmSetting $setting